Does CA follow Fed rules on sale of primary residence?

[Karen Lee]

Certainly hope this is an easy question.

Karen

[Karen Lee]

You must report the sale of your principal residence if you have a gain and do not qualify to exclude all of it, or you choose not to take the exclusion. When you complete your federal tax return, you must complete federal Schedule D (Form 1040), Capital Gains and Losses. A copy of your federal return, and all the supporting schedules must be attached to your California return. Generally, your California gain is the same as federal, so no adjustment is required on your California return. However, if your California basis in the home differs from your federal basis, complete California Schedule D, California Capital Gain or Loss Adjustment.

[MsTabbyKats]

Dumb question....but if you have a loss it doesn't get entered on the return at all, correct?

I know it's not deductible.

[joanmcq]

If you get a 1099-S you better report it. The 1099 is required to be issued if the sale price is over a certain amount (might be the amount of the exclusion). I always report the sales.